The EIA (U.S. Energy Info Administration) launched its “This Week in Petroleumreport on February 10, 2016. It reported that the US crude oil refinery demand fell by 105,000 bpd (barrels per day) to 15.5 MMbpd (million barrels per day) for the week ending February 5, 2016. Final week, the US crude oil refinery demand fell by 24,000 bpd for the week ending January 29, 2016. US refineries operated at 86.1% operable capacity for the week ending February 5, 2016—compared to 86.6% for the week ending January 29, 2016.
US refinery demand by area
The US refinery demand rose to 8 MMbpd within the Gulf Coast region for the week ending February 5, 2016. In distinction, the US crude oil refinery demand fell in the Midwest and West Coast areas for a similar period. These three areas contribute to many of the US crude oil refinery demand.
US crude oil refinery demand in 2015
At present, the US crude oil refinery demand is zero.6% less than the refinery demand of 15.Fifty six MMbpd last year. The fall in refinery demand is due to document gasoline and distillate stocks. The weak refinery demand will result in a rise in crude coal oil stocks. It may have a detrimental impression on crude oil prices. The fall in crude oil prices impacts oil producers like Devon Power (DVN), Energen (EGN), Laredo Petroleum (LPI), and Pioneer Pure Sources (PXD). The fall in refinery demand also suggests weak retail demand. It impacts refiners comparable to Valero Vitality (VLO), HollyFrontier (HFC), Marathon Oil (MPC), and Phillips 66 (PSX).